Initial Unemployment Claims 357K, Down 53K from Last Week

Initial unemployment claims fell sharply this week, reversing out the big jump the week before. In the week ending April 5, initial claims were 357K, a decrease of 53K from the previous week’s revised figure of 410K. The 4-week moving average was 378K, up slightly from the previous week’s revised average of 376K. You can read the full report by clicking here, Unemployment Insurance Weekly Claims Report.

As I wrote out last week, the big jump the week before was caused by the impact of the American Axle strike, which forced a number of auto assembly plants to close, resulting in 42K layoffs. This week’s number, 357K, is based on data collected a week after the layoffs, which gives us a clearer picture of the demand forces at work in manufacturing. The 4 week moving average of 378K is consistent with slow, positive GDP growth but not consistent with the negative GDP growth we would need to be a recession.